Kelloggs Coco Pops Market analysis

﻿2.1 Overview
2.2 Assignment Content
2.2.1 Executive Summary
2.2.2 Table of Conents
2.2.3 IntroductionThe Kellogg Company has grown to become the world's leading producer of cereal. Kellogg’s products are produced in eighteen different countries and are marketed in over 180 countries with the purpose to “nourish families so that they can flourish and thrive” (Kellogg's, 2015). The company was founded by William K. Kellogg with the creation of the popular ‘corn flake’ in 1906. In 1914, the company began international expansion and as the company grew, so did its challenges and competition in the global cereal market. In the 1950’s Kellogg expanded and opened up a branch in New Zealand, based in Newmarket (Kellogg's Locations, 2012), in order to provide the New Zealand consumers with the popular new trend of having a ‘quick and easy breakfast’. In the 1980’s, Kellogg improved and enhanced their marketing strategy under the governance of William E. Lamothe, by targeting and shaping the preference and bias of the middle aged class, therefore increasing their market share and making them the most dominant company in the Breakfast industry. According to Kellogg’s website, the company was created with “a strong commitment to social responsibility and is proud of the progress that has been made”. (Kellogg Company History, n.d.) Kellogg Mission Statement states that “Kellogg is a global company committed to building long term growth in volume and profit and to enhancing its worldwide leadership position by providing nutritious food products of superior value” –W. K Kellogg 2.2.4 Situational Analysis (5-7 pages)

Throughout the 1950s Kellogg introduced some of today's most beloved cereals including the very popular Coco Pops, which at the time of release, was known as ‘Cocoa Krispies’. It was introduced into the market in 1958 and is a breakfast cereal that is a chocolate version of Rice Krispies. In 2003, the name of the cereal was changed and developed to ‘Cocoa...

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Table of Contents
Introduction 2
Marketing Mix and Market Trends 2
Market Segments and Opportunities 3
Customer Purchase Decision Making 4
Competitor Analysis 5
SWOT Analysis 5
Reflections & Conclusions 7
References 8
Introduction
Kellogg’s is a food manufacturing company that was incorporated in 1906 as Battle Creek Toasted Corn Flake Company. Over the 100 years growth and development, it is now a public company listed on the New York Stock Exchange, and well known by millions of customers. Its line of product includes the breakfast cereal, frozen specialty food, and commercial bakeries such as cookies and crackers. It also owns a variety of brands to target different groups of consumers. (“Kellogg Company - Company Profile, Information, Business Description, History, Background Information on Kellogg Company”, n.d.). By using Kellogg’s 2013 annual report and its 2014 third quarter financial results and various other articles, the purpose of this report is to analyse Kellogg’s market mix, identify its market segments based on SWOT analysis. It also seeks to illustrate the customer purchase decision-making process, and to compare with Kellogg’s major competitor, Nestlé, in the market.
Marketing Mix and Market Trends
Following two years of slow or negative growth, breakfast cereal had 5% value growth in 2013 whilst...

...Marketing
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Kellogg’s is a food manufacturing company whose principal products are ready-to-eat cereals and convenience foods, such as cookies, crackers, toaster pastries, cereal bars, fruit snacks, frozen waffles and veggie foods. These products are manufactured in 18 countries and marketed in more than 180 countries. The cereal products are generally marketed under the Kellogg’s name and are sold principally to the grocery trade through direct sales forces for resale to consumers. (Kellogg's, 2010)
In this report I will primarily be looking at Kellogg companies financial reports for the last five years. I'll be analysing the trends survey predictions can be made the future. These predictions will allow the company to create strategies on how to bring the company forward in the future.
Net Sales
Net sales show the amount of sales generated by company after the deductions of returns, allowances are damaged or missing goods and any discounts allowed. (Investopedia)
Year | 2005 | 2006 | 2007 | 2008 | 2009 |
Net Sales ($ Millions) | 10,117,000 | 10,907,000 | 11,776,000 | 12,822,000 | 12,575,000 |
(Kellogg's, 2010)
Kellogg Company has shown steady growth in net sales from the year 2005 to 2008, reaching a peak of just under $13 billion. In 2009 financial year the company suffered a slight dip, but was to be expected with the financial crisis. With the exception of this slight...

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Ethics and Compliance
More than 100 years ago, W.K. Kellogg founded the Kellogg’s company though his belief in nutrition and dedication to well-being. Motivated by a passion for people, quality and innovation, he created the first ever breakfast cereal and then shaped an entire industry. Kellogg soon became a household name; his signature, a trusted trade mark. Today, W.K. Kellogg’s legacy continues to inspire us. Kellogg’s company is a place where innovation lives.
Roles of Ethics and Compliance
Kellogg Company announced today it has been named one of the 2013 "World's Most Ethical Companies" by the Ethisphere Institute, a leading international think-tank dedicated to the creation, advancement and sharing of best practices in business ethics, corporate social responsibility, anti-corruption and sustainability. This marks the fifth time Kellogg has been recognized with this honor (Kellogg Company-Kellogg Company Named as One of the World's Most Ethical Companies by Ethisphere Institute, 2013). Kellogg’s ethical performance culture is guided by our Global Code of Ethics and K Values, which require our employees and stakeholders to protect our reputation for integrity by adhering to the highest ethical and legal standards throughout our business operations. Kellogg also guides their...

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Disclosure Analysis of the Kellogg Company
The disclosure notes of the consolidated financial statements presented in the 2010 Annual Report of the Kellogg Company and subsidiaries shows three areas of interest. This paper will focus on those areas of cash and cash equivalents, accounts receivable, and inventories. A list of components that make up the cash and cash equivalents section will be identified. The first part of the paper will introduce the Kellogg Company and provide some history of the company. The main focal point is the analysis of the annual disclosure notes as it relates to cash and cash equivalents, accounts receivable, and the company’s inventories.
Kellogg’s stemmed out from the invention of flakes cereal in 1894 at the Battle Creek Sanatorium. The Kellogg brothers had invented a new industry. In 1906, production of Kellogg’s Corn Flakes® begins at W.K. Kellogg’s newly formed Battle Creek Toasted Corn Flake Company. After 16 years, the company was renamed Kellogg Company. Kellogg’s brand has become the world’s leading producer of cereal and a leading producer of convenience foods. The company reached international claim early by selling Kellogg’s Corn Flakes in Canada in 1914. International manufacturing facilities were...

...32184_KELLOGGS:KELLOGGS STUDY V7
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Supply chain from
manufacturing to shelf
Introduction
The Kellogg’s Cornflake Company began in 1906 with the Kellogg brothers who originally
ran a sanatorium in Michigan, USA. They experimented with different ways to cook cereals
without losing the goodness. Their philosophy was ‘improved diet leads to improved health’.
Between 1938 and the present day Kellogg’s opened manufacturing plants in the UK,
Canada, Australia, Latin America and Asia. Kellogg’s is now the world’s leading breakfast
cereal manufacturer. Its products are manufactured in 19 countries and sold in more than
160 countries. It produces a wide range of cereal products, including the well-known brands
of Kellogg’s Corn Flakes, Rice Krispies, Special K, Fruit n’ Fibre, as well as the Nutri-Grain
cereal bars.
Kellogg’s business strategy is clear and focused:
• to grow the cereal business – there are now 40 different cereals
• to expand the snack business – by diversifying into convenience foods
• to engage in specific growth opportunities.
By acting responsibly, businesses win respect and trust from communities, governments,
customers and the public. This enables the business to grow. In the community, Kellogg’s is
known for its approach to Corporate Social Responsibility (CSR). For example, its programme
to promote the benefits of breakfast clubs has provided over one million breakfasts to
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...International Cocoa/Chocolate Market
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Demand Factors
The demand factors of the chocolate in the world mainly arise from Britain, although after 2000 the sales in Britain were much lower. The demand determinants arise from the change of consumers’ behaviour. The consumers in Britain seemed to take care about their health and reduced the consumption of the chocolate which drove the demand down, although demand was higher in the luxury chocolate because of the fondness for luxury. The cocoa and chocolate are complementary goods, so there is an inverse relationship between the price of cocoa and the demand for chocolate. In 2011, the political crisis occurred in Ivory Coast which led to the rise of the price of cocoa caused the demand of the chocolate goes down.
Supply Factors
The supply factors in the three articles are the fair-trade. In 2002, the fair-trade price of chocolate was $1750 per ton which was higher than the equilibrium price. The higher of the price made more farmers be willing to produce cocoa and therefore increased the price of the cocoa. However, a portion of the $1600 per ton was paid to the middlemen who was a must for the export, which would reduce the money received by the producer. This may lower the supplied quantities a little bit. In 2011, political crisis and the export ban happened in the Ivory Coast drove the supply of the cocoa down which on the other hand raised the...